Markets Today: Inflation Data and Central Bank Decisions

Markets Today: December 19, 2025

Global market pricing continues to be shaped by the decisions of central banks and inflation data. Particularly, the November inflation figures released from the U.S. have paved the way for a broader analysis of the economy.

U.S. Inflation Data and Its Effects

The November headline CPI was announced at 2.7% year-on-year, while the core CPI was reported at 2.6%. Despite data collection disruptions during the government shutdown, the figures indicate a cooling in inflation. This situation has led to a retreat in yields in global bond markets and a recovery in risk appetite.

Japan's Interest Rate Decision

The Bank of Japan raised the policy interest rate by 25 basis points to 0.75% in its final meeting of the year. This decision marked the highest level in nearly 30 years. However, the market is now focused on the pace of future interest rate hikes and the terminal level.

European Central Bank's Growth Forecasts

The European Central Bank made limited upward revisions to its growth and inflation forecasts while keeping interest rates stable. The ECB emphasized that economic growth would stem from domestic demand, while also warning about uncertainties in global trade.

Bank of England and Expectations

The Bank of England cut the policy interest rate by 25 basis points to 3.75%. BoE Governor Bailey expressed satisfaction with the progress in inflation and indicated that gradual rate cuts would continue in the process.

Commodity Market Situation

In the commodity sector, short-term profit taking was observed in precious metals following the inflation data. Gold is trading near historical highs, while silver continues its strong performance. Oil prices are in a limited downward trend amid peace expectations related to the Russia-Ukraine war.

BIST 100 Latest Situation

Domestically, the BIST 100 index concluded the fourth trading day of the week with a limited positive outlook, closing at 11,335 points, reflecting a 0.43% increase. Purchases stemming from the 11,250 level supported the index throughout the day. Investors are expecting to start the new day with a volatile trend, in line with the positive atmosphere in global markets.

Macroeconomic Developments

In order to ensure fiscal stability, the leading indicators mentioned in the Central Bank's Monetary Policy Committee summary signal a moderate outlook for December inflation. While the pace of increase in rental prices is slowing, the deterioration in market expectations is being closely monitored.

Featured Stocks

• Turkish Gold Enterprises (TRALT)
• TR Anadolu Metal Mining (TRMET)

The information here does not constitute investment advice.